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Thursday, October 18, 2012

IRS Announces 2013 Limits for IRAs and Pension Plans

IRS Announces 2013 Limits For IRAs and Pension Plans

Today, the IRS announced to 2013 limits applying to IRAs and pension plans by issuing IRS news release 2012-77.

The IRA contribution limits are changed - $5,500 (up from $5,000) if the individual is younger than age 50 in 2013, and $6,500 (up from $6,000) if he or she attains age 50 or older in 2013.

The maximum SEP contribution for 2013 will increase to $51,000 from $50,000.

The SIMPLE IRA contribution limits are also changed for 2013. The maximum elective deferral contribution amount is $12,000 for a person who is younger than age 50 in 2013 and $14,500 if he or she attains age 50 or older in 2013.

The 401(k) elective deferral contribution limits also changed for 2013. The maximum elective deferral contribution amount is $17,500 (up from $17,000) for a person who is younger than age 50 in 2013 and $23,000 (up from $22,500) if he or she attains age 50 or older in 2013.

The compensation ranges applying to deductible IRA contributions do increase.

  • The 2013 compensation range applying to a person whose filing status is single, head of household or qualifying widower is ($59,000 - $69,000) (up from $58,000 - $68,000}
  • The 2013 compensation range applying to a person whose filing status is married/joint return and an active participant is ($95,000 - $115,000) (up from $92,000 - $112,000}
  • The 2013 compensation range applying to a person whose filing status is married/joint return but not an active participant is ($178,000 - $188,000) (up from $173,000 - $183,000}
  • The 2013 compensation range applying to a person whose filing status is married but filing a separate return is unchanged at ($0 - $10,000).

The compensation ranges applying to Roth IRA contributions have increased for 2013.

  • The 2013 compensation range applying to a person whose filing status is single, head of household or qualifying widower is ($112,000 - $127,000) up from ($110,000 - $115,000)
  • The 2013 compensation range applying to a person whose filing status is married/joint return is ($178,000 - $188,000) up from ($173,000 - $183,000)
  • The 2013 compensation range applying to a person whose filing status is married but filing a separate return is unchanged at ($0 - $10,000).

The compensation ranges applying to a savers tax credit also will increase.

Posted by James M. Carlson at 14:54.24
Edited on: Monday, April 14, 2014 15:36.28
Categories: Governmental Reporting, Pension Alerts, Roth IRAs, Traditional IRAs